Buying house - some facts

Following are some facts to be remembered while buying the house,

1. Buying a house is one of the biggest financial commitments today.
    Many developers offer to sell apartments during the construction phase.
    Buyers are tempted because of the discount to current market price
    and the attractiveness of the show flats on display. But remember,
    there is a trade-off.
    While you get a discount for the under-construction flat but there is a
    risk whether the construction will complete on time or not. If you are a
    potential buyer of under-construction property then you should have all
    information in hand before buying the house.

2. If you have a choice, choose for the property that allows you
    construction-linked payment plans. If construction is stuck half-way,
    there is no pressure on you to make future payments.

3. Most developers who have construction-linked target, link the
    installment to casting of slab. Over 80% of the payments are required
    to be completed by the time the slab structure is in place. In reality,
    given the technology used today, the slab casting gets completed in no
    time. While 80% of the construction time is taken in doing up the rest
    of the work.

4. During the boom, many builders shifted to a time-linked payment plan.
    So a customer was required to pay even if the developer didn’t show
    any signs of progress in the project. But many developers were caught
    on the wrong foot as the law of the land widely advocated for
    construction-linked payment plans.

5. Post financial crisis, some builders started offering schemes where
    they pay the EMI of under construction properties.
    If you are buying an under-construction property as an investment you
    should look for cash flow instead of getting into cash crunch. Until there
    is a conveyance or a co-operative housing society formed by home
    buyers, investors cannot re-sell their flats without a no-objection
    certificate from the developer who might ask for transfer charges for the
    same.

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